Air Canada, Transat get another go-ahead for acquisition in 2020
Air Canada and Transat conclude a definitive arrangement agreement, moving another step closer to a $520 million worth purchase deal.
Air Canada is looking to buy Transat, a Montreal-based tour operator, which has around 20 business unites, including the fourth largest Canadian airline by fleet size ‒ leisure carrier Air Transat.
Negotiations are ongoing since late 2018, and now the two parties have concluded a definitive Arrangement Agreement, as announced on June 27, 2019. Under this agreement, Air Canada would purchase all issued and outstanding shares of Transat for $13 per share.
The transaction remains subject to regulatory and shareholder approvals and other closing conditions. If successfully concluded, the transaction is expected to be completed in early 2020. In which case, Transat (and Air Transat) brands will not disappear, though. Air Canada intends to preserve both brands and maintain the leisure company’s head office and “key functions”.
Previously, Air Canada explained its plans for Transat as follows: “Combination of two respected Quebec-based aviation and travel brands to create Montreal-based global leader in leisure, tourism and travel distribution offering Canadians choices to more destinations and promoting two-way tourism,” as revealed in May 2019.
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